Mali’s parliament adopted a new mining code that will increase the government’s stake and local shareholding in the extractive industry to about a third.
(Bloomberg) — Mali’s parliament adopted a new mining code that will increase the government’s stake and local shareholding in the extractive industry to about a third.
Mining companies will be required to cede 10% in their projects to the state, which has the option to acquire a further 20% within the first two years of commercial production, according to the new law. Local investors will also have the right to buy as much as 5% of operations held by foreign companies. The legislation will require presidential assent.
“If it allows the state to benefit by increasing its revenue from mining operations, which is taking place on its territory, it’s a good thing,” the head of Mali’s mining chamber, Abdoulaye Pona, said by phone from the capital, Bamako.
Pona said he didn’t know whether existing contracts will be required to comply with the new code. Mali is a leading gold producer with Barrick Gold, B2Gold Corp and Endeavour Mining Plc among the companies operating there.
Read more: Mali Seeks Bigger Stake in Mines With Regulatory Revamp
–With assistance from William Clowes.
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